AAVE, one of the most prominent DeFi tokens, has had a good start to July. The coin is experiencing a price rally and is up more than 26% in the past week. In short, the The AAVE market seems to be getting a lot of attention as evidenced by recent high whale activity.
AAVE Is Targeting $90 Again – Price Action
AAVE has taken off positively in recent weeks. Since reaching an annual low of $50 in mid-June, the token has followed a bullish course, increasing its value by more than 53%.
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It is worth noting that the price of AAVE fell a few days after hitting the $75 mark on June 26. This drop caused the token to lose most of its price gains at the time. However, the DeFi token appears to have fully recovered from this loss, with its annual high of $91.73 now in sight.
According to historical price data, there seems to be resistance in the $80 price zone. So the AAVE token should overcome this barrier to move back to $90. If the coin fails to cross this threshold, it may experience a slight retracement to find support at the $70 price level.
CoinGecko Data shows that AAVE is currently trading at $75.81 and has lost more than 2% of its value in the past 24 hours. This indicates diminishing buying pressure, which could hamper the token’s chance of breaching the $80 resistance zone.
AAVEUSD trading at $74.25 | Source: AAVEUSD chart from TradingView
Aave Freezes TUSD Reserve on V2 Ethereum Pool
On July 3, 2023, the Aave community implemented a proposal to freeze the TrueUSD (TUSD) reserve on the Aave V2 Ethereum pool. This comes in response to the recent controversy surrounding the stablecoin.
This proposal prevents users from depositing or borrowing TUSD on the Aave V2 Ethereum pool. “This AIP (Aave Improvement Proposal) is designed to take a conservative approach to the TUSD situation,” the proposal said.
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TUSD jitters started after technology partner Prime Trust was rumored to have gone bankrupt. These problems were compounded when the embattled Fintech company close withdrawals and deposits under pressure from Nevada state regulators.
Although TrueUSD has stopped minting its stablecoin through Prime Trust, there are still some insecurity around the use of its assets. And losing the dollar peg in the month of June didn’t help matters.
This AIP to freeze TUSD reserves received overwhelming support as nearly 84% of voters approved it. However, it is worth noting that users can still refund and withdraw their TUSD from the stablecoin pool.
Featured image of Unsplash, chart from TradingView
